Pakistan and Finland release updated fiscal and borrowing plans

Pakistan has outlined its borrowing plan for fiscal year 2026-27, projecting gross financing needs of Rs. 28.647 trillion. The government assumes an exchange rate of Rs. 290 per US dollar for this period. To manage a projected fiscal deficit of Rs. 7.02 trillion, the strategy focuses on increasing medium- and long-term borrowing to reduce reliance on short-term Treasury Bills and mitigate refinancing risks. Key instruments include Pakistan Investment Bonds (PIBs) and various Islamic instruments such as Sukuk.

In Finland, the government's latest supplementary budget proposal for 2026 revises the net borrowing requirement to EUR 13.254 billion, resulting in gross borrowing of EUR 44.396 billion. The Finnish Ministry of Finance has upwardly revised economic forecasts, projecting GDP growth of 1.6% in 2026, 1.8% in 2027, and 1.5% in 2028. This recovery is supported by strong exports, industrial order books, and increased investment in data centers and defense procurement.